Is investing in condos good or bad. Trying to turn around a neighborhood bad stigma. Also how to deal with a bad property manager from the condo association?
I like condos. Turning around a neighborhood, how are you planning to do that? Best way to remove a bad HOA manager is to join the board and voice for a new association manager. They might not be a bad manager. You might just have to manage the manager.
It all depends, we had a unit in one in Annandale, VA. Costs and assessments got to be a little much so dumped it at the peak in 2007. In a house now with a HOA, didn't like a few things so joined the board and helped adjust their thinking...
I lived in a townhome in NY for 12 years and the board was insane. Everyone hated it but did nothing about it. Then finally a few concerned residents hijacked the board and kicked out all the incumbents. Now the HOA is run by reasonable people (now that I left!).
As far as investing in townhomes, I tried very hard over the last year to make the numbers work but once you add in the HOA fees, I couldnt get it to cashflow properly even if they gave me the unit for free. I listened to a BP podcast (it was in the high 60's for the podcast #) and the investor gave a list of all the benefits of owning a single family rental. The list was so compelling that I switched my focus to houses and now I am set to close on two next week.
Part of my overall strategy is to experience appreciation so I am buying in areas that I think are slightly depressed but as Denver grows, these areas will turn around and become highly desirable due to the close proximity to Denver and nice views.
Boston RE is a little pricey so you won't be able to buy as many units but each unit will probably hold its value over the long term.
how could there be a definitive answer on a question like this....
I own a condo and 2 SFH (just my opinion)
At first I couldn't see how condo's could make the #s work. but depending on the market here is a few thing to consider as a plus of owning condo as RI.
1. in the market i was looking you could get a condo for less than 1/2 of a SFH. being new to RI. The cheaper buy-in made a condo more appealing
2. being in a beach town Insurance can be very expensive on a SFH. however significantly cheaper on a condo when the HOA insures the building
3. Only time will tell.. but estimate there is less capital expenses in the long run.
here are some negatives i experienced.
1. selling a condo can be difficult plus i havent seen the appriecation, like i would with a SFH
2. HOA fees drive you crazy
I'm a big fan of condos and ultimately it comes down to the numbers. If you're starting out and need a lower price point to get into a property, if you're not interested in maintaining mechanical or roofs, if you want managed costs (HOA's) versus the occasional big ticket cost (hot water heater fails), they can be a great option. On the lower price end you will not see as much appreciation but you also shouldn't see a huge price drop if the market troughs, and you'll still be collecting rent. I have a condo that is worth $91k and cash flows $800/mo in Denver, I'd never see that on a SFH that I could afford.
What exactly do you mean by a "neighborhood bad stigma", buying one condo to turn that around might be something to think more about.
i am looking at a condo in foreclosure for $142,000 plan on putting $30,000 down payment the bank foreclosed on it at $123,900 every other condo for sale in the condominium same square footage 1 b 1b r on the market for anywhere between $168,000 to $210,000 buying the property non furnished furnishing it and getting the on site 3 rd party HOA management marketing they clam to do everything even the insurance on the building would i be making any profit to pay it off if i am buying holding and not touching any of the money keeping it invested
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